English court approves Veon bond restructuring scheme
[ad_1]
The Dutch Veon’s bond restructuring scheme, through which the holding will be able to delay the redemption of bonds worth $1.7 billion, has been approved by the British Bankruptcy and Companies Court. Veon Group CEO Kaan Terzioglu believes the bond restructuring will give the company time and “financial flexibility” to complete the sale of its Russian business, Vimpelcom (Beeline brand).
The restructuring will affect two bond issues in the amount of $1 billion (due February 13, 2023) and $700 million (April 26, 2023). Previously, this scheme was approved by bondholders.
“We welcome the approval of the scheme by the court. In our opinion, it meets the interests of all interested parties. This gives our group additional financial flexibility and time to complete the sale of our Russian business,” reads a press release on website Veon quote from Mr. Terzioglu.
Previously, Veon explained that going to court to delay payments is necessary to avoid double payment. This situation could have arisen due to the fact that the Russian Ministry of Finance demanded that VimpelCom fulfill its obligations to Eurobond holders, many of which initiated legal proceedings. However, such payments will not be able to be recognized by Euroclear or Clearstream, due to which the obligations will return to Veon.
Read more about the sale of the Russian business of Veon – in the material “Kommersant” “Veon asks creditors to wait”.
[ad_2]
Source link
